GST Audit

Every registered taxable person whose turnover during a financial year exceeds the prescribed limit (as per the latest GST Rules, the turnover limit is above Rs 2 crore) shall get his accounts audited by a Chartered Accountant or a Cost Accountant.

GST Audit is the examination of records maintained by a registered dealer. The aim is to verify the correctness of information declared, taxes paid and to assess the compliance with GST.

Need for GST Audit

A taxpayer is required to self-assess his tax liability, pay taxes and file returns under GST which is a trust-based taxation regime. Thus, in order to ensure whether the taxpayer has correctly self -assessed his tax liability a robust audit mechanism is a must.

Types of GST Audit

GST Audit performed by a Chartered Accountant/ Cost Accountant : The taxpayer has to get his accounts & records audited by Chartered Accountant/ Cost Accountant or Cost Accountant appointed by the taxpayer if the Turnover exceeds 2 crores.

GST Audit performed by tax authorities : GST Officer, authorized by the commissioner, performs this kind of GST audit, A notice will be sent out to auditee, at least 15 days in advance before starting of this kind of GST audit and such a GST audit shall be completed within 3 months from the date of of an audit.

Special GST Audit : If GST Officer declares that the value of turnover and or input credit claimed by a taxpayer is/are not correct, he may direct for Special Audit to be conducted by a Chartered Accountant/ Cost Accountant. The CA or CMA for such a GST audit is nominated by the commissioner. The commissioner pays the expense of such a GST audit and examination. On the conclusion of this special GST audit, the findings have communicated the auditee in Form GST ADT-04.

Documents Required
 

• Audited financial statements (which is PAN-based)


• Annual return in form GSTR-9 (for every GSTIN)


• Certified reconciliation statement in Form GSTR-9C, reflecting reconciled values of supplies and tax amounts declared in GSTR-9 compared to audited financials in Part-A, along with the Audit report in Part-B.